Question

Explain the following steps in the staffing process :

(i) Performance appraisal

(ii) Promotion and career planning

(iii) Compensation

Hint:

Explain each step under its own heading in two or three sentences. Appraisal evaluates work against standards, promotion and career planning give growth, and compensation is the pay and benefits for the work.

Answer 1

Step 1: Understand the question:
These three are later steps of the staffing process. They deal with the employee after he or she has joined the organisation.

Step 2: Step (i): Performance appraisal:
Performance appraisal means evaluating the work of an employee against set standards.
The employee is told the result, and it is used to take decisions on pay, promotion and training.
It helps the manager find out who is doing well and who needs help, and it also shows the need for further training.

Step 3: Step (ii): Promotion and career planning:
Promotion means moving an employee to a post of higher responsibility, which usually brings more pay and more job satisfaction.
Career planning means the manager designs activities that serve the career goals of employees.
Together they keep employees motivated, since they can see a path of growth within the organisation.

Step 4: Step (iii): Compensation:
Compensation is the pay and benefits given to employees for their work.
It covers basic pay, allowances, bonus, and other benefits. It must be fair and match the work done and the market.
Fair pay keeps employees satisfied and attracts good people to join.

Final Answer:
Performance appraisal checks how well the employee works, promotion and career planning provide growth, and compensation rewards the employee fairly for the work done.